Post-Merger Integration Blog

A few years ago, I was asked to help with a troubled PMI project - the project and technical leads both demonstrated communication issues; as in they didn't listen to the tech staff from an acquired business. There were concerns that their behaviour was harming the relationship between the technology teams who had only recently met.

Every company has its own set of characteristics. These may have evolved over many years or been the same since an organisation’s inception.

A company’s character or culture is the intangible ethos that drives it as a business. It’s about how groups of people interact with each other and the values they share. Your company culture is a strong influence on how your employees do their jobs and the attitude they take towards you, their employer.

The post-merger integration phase is a tricky time for all businesses.

In this crucial period, you need your teams to be motivated – yet this is just when staff morale can drop, if not handled carefully. If one employee is feeling demotivated this negative attitude can spread to their colleagues.In a situation like this, action needs to be taken swiftly to avoid one person dragging a whole team down.

Today’s technology departments are generally made up of people from diverse backgrounds and of different ages.

There are the graduates and apprentices, then the Generation X in their 40s and 50s, and even some older Baby Boomers. This multi-generational environment can be beneficial as it combines modern and legacy ideas. Traditional approaches can work simultaneously with contemporary methodologies.

When the young learn from the old and vice versa, you’ve got an ideal creative mix. However, cracks can begin to show when the pressure is on.

When you merge two companies, it’s not just two technology environments (or more) that need to become one; you’re also bringing together groups of people from varying backgrounds. Sometimes the acquiring and acquired company can be very similar in culture and ethos - but more often they can be poles apart.

Every company’s technology environment is different because it has evolved over time. Which means, one size never fits all. Therefore, it’s always necessary to do an in-depth assessment before you plan your PMI project. If you fail to carry out this level of due diligence, hidden costs and potential delays will emerge as you progress.

Deploying the latest technology can play a significant role in the success of your post-merger integration project.

However, when we talk about the technology involved in your PMI, we don’t just mean your own internal IT infrastructure. We’re also referring to the technologies to ensure your integration goes according to plan.

An essential aspect of any PMI project is obtaining a complete asset inventory – and not just of the company you’re acquiring. An overall inventory of the two (or more) merging companies offers valuable information and insights.

No two businesses are the same, and no two M&A projects are the same. Which means every PMI is different and needs to be project managed so that it aligns with your overall business goals.

Your IT integration needs to be more wide-ranging than simply just merging two companies so that they’re capable of working together. To gain maximum value from your new acquisition, you need a plan that’s linked to your business’s strategy at every stage of the integration.

It’s difficult to get the best from your IT staff when they’re under pressure, putting in long hours and concerned about the security of their jobs.That’s why it’s imperative when you outline your PMI strategy to give as much attention to your teams as you do to your technology.